The Hindu Business Line : Hudco raises Rs 700 cr from public deposits

HOUSING and Urban Development Corporation (Hudco) has added fresh deposits worth Rs 700 crore to its Public Deposit Scheme, thereby registering a 100 per cent growth over last year.

Speaking to Business Line, Dr P.S. Rana, Senior Executive Director, Hudco, said that he was confident that the deposits would be more than Rs 800 crore by the end of this month. "Our Public Deposit Scheme is becoming increasingly popular despite no publicity," said Dr Rana.

The interest rate offered for this scheme varies between 7 per cent and 7.5 per cent.

Hudco had also switched over to a need-based borrowing system, which has brought its outstanding down considerably and has helped avoid creating idle money, revealed Dr Rana. "Hudco, which has been raising funds from the market by way of issuing bonds and institutional loans from LIC, GIC, various banks and international borrowings from organisations such as World Bank and ADB, has been servicing its debt liability as per the agreed schedule without any delays," he said.

He said that Hudco's total borrowing outstanding stood at Rs 16,637 crore as per the audited balance sheet for the year 2001-02. "During the last 33 years we have issued 87 series of various bonds which include tax-free, taxable, infrastructure as well as priority sector bonds, with a total outstanding of Rs 6,329.18 crore as of March 31, 2002."

Dr Rana said that for the current financial year Hudco had already issued 10 series bonds for an aggregate amount of Rs 1,097.20 crore.

Ratings on FDs, bonds lowered

THE ratings of Hudco instruments have been revised downwards by Crisil. The ratings on fixed deposits had been lowered to `FAA' (from `FAA+') and its bonds to `AA-' (from `AA').

The revisions have been on account of Hudco's exposure to poor credit quality State Governments and entities, both in housing as well as urban infrastructure sectors, said a news release from Crisil.

"The significant, though declining overdues continue to be a key concern, '' said Crisil.

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